Statement (I) is true: fine-grained clays possess flocs and microscopic pore structures yielding void ratios often exceeding $0.8$ to $\gt 2.0$, whereas coarse sand/gravel has dense packing with void ratio typically $0.3$ to $0.7$. Statement (II) is false: when soil is fully saturated, the degree of saturation $S = 1$ ($100\%$); the void ratio $e = V_v/V_s$ can be any positive value, independent of saturation. Option analysis: (A) Statement (II) is false. (B) Statement (I) is true. (C) Statement (I) is true but Statement (II) is false is the correct answer. (D) Inverted.

Atterberg limits (liquid limit, plastic limit, and shrinkage limit) are defined as the specific moisture contents (percentage water by dry weight) at which a fine-grained soil transitions between liquid, plastic, semi-solid, and solid consistency states. Option analysis: (A) Soil moisture is the property quantified by Atterberg limits. (B) Soil texture is grain-size distribution. (C) Soil structure refers to spatial particle arrangement. (D) Soil cohesion is shear strength parameter.